From the following Balance Sheet of Arun and Barun and additional information, calculate interest
on capitale 6% p.a. payable to Barur for the year ended 31st March, 2021:
Dan
es Liabilities
By
Assets
₹
ks
Sundry Assets
1,10,000
Arun's Capital A/C
Barun's Capital A/C
Proht and Loss Alc
50,000
40,000
20 000
1.10,000
1,10,000
During the year, Barun's drawings were 15,000 and profit during the year was * 30,000
Answers
Answer:
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Given: Balance sheet of arun's and varun's.
To Find: Interest on capital.
explanation:
Calculation on Arun's capital Rs.
Arun's capital at 31st march, 2021 90,000
(+) Drawings made during this year 10,000
---------------
1,00,000
(-) Profit added [ (60,000-40,000)] 10,000
-------------
Capital as at 1st march 2020 90,000
-------------
Interest on capital@5%p.a. = 90,000×(5/100)
= 4500Rs.
Calculation on brun's capital
brun's capital at 31st march, 2021 80,000
(+) Drawings made during this year 30,000
---------------
1,10,000
(-) Profit added [ (60,000-40,000)] 10,000
---------------
1,00,000
Interest on capital@5%p.a. = 1,00,000 ×(5/100)
= 5000Rs.
Therefore, interest on capital for arun's is 4500Rs. and for varun's 5000Rs.